The Federal Government, on Monday, announced $2.42 per metric million British thermal unit as the new price of natural gas for power generation companies. The latest increase higher than the previous rate of $2.18mmbtu.
This announcement was made on Monday by the Nigerian Midstream and Downstream Petroleum Regulatory Authority and unveiled the new domestic base price and wholesale prices of natural gas for year 2024
The announcement was signed by the Chief Executive, NMDPRA, Farouk Ahmed, fixed the cost of commercial gas at $2.92mmbtu, up from the previous cost of $2.5mmbtu. He noted that the Petroleum Industry Act 2021 assented to by the President on August 16, 2021, and gazetted in August 2021, provided a clear regulatory framework for the determination of a market-based pricing regime for the domestic gas market.
With this latest cost of the commodity, there is a high tendency for an upward review of power tariffs, as gas is a major component used in power production.
Earlier in January this year, a Multi-Year Tariff Order was released by NERC for the electricity distribution companies and calculated based on the previous price of natural gas.
